Principles of International Corporate Finance

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ST. THOMAS UNIVERSITY SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING, ECONOMICS, AND FINANCE

FIN 318 - PRINCIPLES OF INTERNATIONAL CORPORATE FINANCE COURSE SYLLABUS Term: Spring 2013 Tuesday & Thursday 12:15 – 1:30 Main Campus I. COURSE NUMBER AND TITLE FIN 318-01 – Principles of International Corporate Finance II. INSTRUCTOR Dr. Nicole Grandmont-Gariboldi ngariboldi@stu.edu Office Phone (305) 628-6568 III. TEXTBOOK Fundamentals of Multinational Finance 3rd Ed Moffett , Stonehill &Eiteman, Addison-Westley ISBN: 0-321-54164-2 IV. ENTRANCE COMPETENCIES       Basic quantitative skills [financial calculator required]. Knowledge of financial theories and principles applied mainly in a domestic setting. Understanding the fundamentals of international economics. Ability to use an E-mail system. Students will be responsible for all e-mail messages sent by the instructor. Access to the World Wide Web. Prerequisites: Eco 307 or BUS 316.

V. COURSE DESCRIPTION AND OBJECTIVES A review of international economic concepts, national balance of payment problems, adjustments, impact and influence on the corporation’s international financial management function. It includes forecasting foreign exchange rates; analysis of various types of foreign exchange rate risks and exposures; methods financial managers use to reduce or eliminate such risks, including hedging and arbitrage techniques; asset management; sourcing international capital investment; study of international trade financing, international trade credit, instruments of international trade financing.

Prerequisite: ECO 307 or BUS 316D

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It will cover international financial markets and instruments and focus particularly on theories and concepts underlying foreign exchange rate determination, international risk management devices, international portfolio construction, and international financial corporate governance. Bridging between theory and practice will be regularly addressed in problem solving, case discussions, strategic analyses, financial model demonstrations, and reviews of recent literature. Students will learn and apply techniques for evaluating financial projects, risk management approaches, and a firm’s strategic financial posture, from a global perspective. VI. EXIT COMPETENCIES A - Upon completion of this course students should:           Be better aware of the complexities of the global financial environment Understand monetary and exchange rate systems Be familiar with currency terminology and quotations Understand potential foreign exchange rate determinants Compute currency and cross-currency conversions and exchange-rate adjusted risk and return Evaluate potential incremental benefits from participating in international markets for the firm and for investors Assess various types of foreign risk exposure and select among available risk management strategies for a given situation. Perform arbitrage and hedging financial transactions, using money market instruments and financial derivatives such as swaps, forwards, futures, and options. Evaluate the firm’s cost of capital and financial structure in a global environment Discuss the practical relevance of the financial models covered during the course and recognize their limitations.

B - In conjunction with the BBA in Finance Program Outcomes, students’ abilities to perform in the following areas will be assessed:  Acquiring specific knowledge of the analytical and practical tools of the world of Finance as applied in profit, non-profit, and governmental organizations Applying critical thinking skills acquired from exposure to specific subject theories as they have been combined with real-world application. Applying and articulate subject knowledge in a critical fashion, for analysis of financerelated issues





VII. COURSE METHOD The course format consists of the instructor’s lectures, case/problem solving, research paper presentations, and discussions of relevant recent...
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